Summary List Placement
US stocks slid from record heights on Tuesday amid continued investor concerns surrounding the COVID-19 pandemic and a lack of additional fiscal stimulus.
Daily COVID-19 cases continue to rise in the US and around the globe, and lockdown restrictions are intensifying in states like California and Michigan.
Another round of fiscal stimulus seems unlikely for now, especially after Senate Majority Leader Mitch McConnell said the Democrats’ $3.4 trillion proposal was “unserious.”
Watch major indexes update live here.
US stocks closed lower on Tuesday following record highs reached the prior day as investor concerns surrounding the COVID-19 pandemic lingered.
Despite good news from Moderna and Pfizer on the vaccine front, daily COVID-19 cases remain on the rise and it the widespread availability of a vaccine is still months away.
And while some investors are holding out hope for another fiscal stimulus bill from Congress, they shouldn’t be holding their breath as Senate Majority Leader Mitch McConnell on Tuesday called the Democrats’ $3.4 trillion stimulus proposal “unserious.”
Here’s where US indexes stood at the 4 p.m. ET market close on Tuesday:
S&P 500: 3,609.53, down 0.5%
Dow Jones industrial average: 29,783.35, down 0.6% (167 points)
Nasdaq composite: 11,899.34, down 0.2%
Read more: 30 years old with a piece of 300 units: Here’s how Evan Holladay is filling a unique multifamily real-estate niche with an under-the-radar strategy
Technology stocks, which underperformed value stocks on Monday, got a boost in early trades on Tuesday, driven in part by a move higher in shares of Tesla and Amazon.
Tesla jumped on Tuesday after the S&P 500 Index Committee said it would add the electric-car manufacturer to its index. The move is likely to boost demand for shares of Tesla, as trillions of dollars are indexed and benchmarked to the S&P 500.
Amazon climbed after it announced the launch of a digital pharmacy, setting itself up to directly compete with retail pharmacy chains like Walgreens, CVS, and Rite Aid. An analyst from D.A. Davidson said Amazon’s foray into the pharmacy sector could represent a trillion dollar opportunity for the e-commerce giant.
Read more: RBC says buy these 25 healthcare-tech stocks to reap the benefits of the US digital health industry, which has been accelerated by 5 years because of COVID-19
Merck, Pfizer, and AbbVie got a boost on Tuesday after quarterly filings showed that Warren Buffett of Berkshire Hathaway bought billions of dollars’ worth of shares in the pharmaceutical companies.
West Texas Intermediate crude rose as much as 0.9%, to $41.69 per barrel. Brent crude, oil’s international benchmark, traded in the other direction. It slid 1.7%, to $43.08 per barrel, at intraday lows.
Gold slipped on Tuesday, decreasing as much as 0.6%, to $1,877 per ounce.
Read more: GOLDMAN SACHS: Buy these 20 deeply underpriced stocks now before the recovery helps them rebound and crush Wall Street’s low expectations in 2021Join the conversation about this story » NOW WATCH: July 15 is Tax Day — here’s what it’s like to do your own taxes for the very first time